March 2024 Student Housing Report: Slowing Growth and Rising Concerns

Explore the Latest College House Report: Student Housing Rates Reach $959 with +8.5% Year-over-Year Growth

The March 2024 Month-End Report brings essential insights into the current state of the student housing market, highlighting key trends that stakeholders should pay attention to. As we continue to see strong growth in the sector, the average student housing rate has reached $959, reflecting an 8.5% year-over-year growth. This growth signals strong demand in the student housing space and offers investors, property managers, and developers important data for making informed decisions. Let’s take a closer look at the key insights provided in this month’s report:

1. National & Regional YoY Leasing Snapshot

This section of the report provides an in-depth analysis of leasing activity across both national and regional markets. By examining year-over-year (YoY) leasing trends, we can gain a better understanding of the overall demand for student housing and how it varies across different regions. Increased leasing activity in certain regions suggests a healthy and growing market, while regions with slower growth may indicate a need for strategic adjustments, such as property upgrades or targeted marketing campaigns. This data is crucial for investors looking to optimize their portfolios and identify new opportunities.

2. National & Regional Rate Growth Snapshot

Rental rates are one of the most telling indicators of the health of the student housing market. The national and regional rate growth snapshot reveals how student housing rental rates have evolved across different areas. With a +8.5% YoY growth, national rates are on the rise, showing the strength of the market and increasing demand for student accommodations. This increase can be attributed to a variety of factors, including growing student populations, strong local economies, and limited supply in high-demand areas. Property managers and investors should use this data to assess pricing strategies and ensure they remain competitive in the marketplace.

3. 3-Year MoM Trend Graph: Rates

The 3-Year Month-over-Month (MoM) Trend Graph for rates offers a long-term view of the fluctuations in student housing pricing over the past three years. By analyzing month-over-month trends, this graph highlights cyclical patterns and helps identify peak seasons for pricing adjustments. For instance, we can see trends such as higher rates during certain months when demand spikes, or periods of stagnation when leasing slows down. Understanding these trends is essential for optimizing revenue and planning for future price changes based on historical data.

4. Floor Plan Level Rate and Pre-Lease Trends YoY

In addition to overall market trends, this report also dives into a more granular analysis of floor plan-level rate and pre-lease trends on a year-over-year basis. This information is valuable for property managers and developers who are focused on specific unit types. For example, if one-bedroom units show consistent demand and higher rates compared to larger apartments, property managers may choose to prioritize marketing efforts toward these units or design new developments based on demand for certain floor plans. Similarly, if a particular floor plan type is underperforming, adjustments can be made to attract more tenants, such as introducing added amenities or more competitive pricing.

5. Market Spotlight: East Lansing, MI

This month’s report includes a Market Spotlight on East Lansing, MI, offering a closer look at this specific market. With East Lansing being home to Michigan State University, the demand for student housing is naturally high, and understanding how the market in this area is performing is essential for anyone looking to invest in or manage student housing in the region. The spotlight provides insights into leasing trends, rental rates, and the overall market outlook, helping investors make informed decisions based on localized data. This section is particularly valuable for stakeholders looking to enter or expand their footprint in the East Lansing market.

In conclusion, the March 2024 College House Report reveals a strong and growing student housing market, with rental rates increasing and leasing activity staying robust across both national and regional markets. By understanding these key insights—whether it’s the YoY leasing trends, rate growth, or specific market performance like that of East Lansing—stakeholders can adjust their strategies, maximize returns, and make data-driven decisions moving forward.

For those seeking an even deeper dive into the data, we invite you to explore our Enhanced Report or Database Explorer Solutions. To learn more, visit College House or please reach out to us at info@collegehouse.com.